(Alliance News) - NewRiver REIT PLC on Thursday said it is making progress on its capital recycling programme as it aims to recycle at least 5% of its portfolio in its current financial year.
This far in its financial year, which ends March 2020, the real estate investment trust "has either completed, exchanged or is under offer on GBP57.9 million of disposals on terms 1.2% above book value, reflecting a blended net initial yield of 5.4%".
Thus far, NewRiver REIT has used the GBP29.9 million from completed disposals to acquire five retail parks as part of a newly formed joint venture, of which its gross asset share is GBP34.7 million, at a blended net initial yield of 9.0%, therefore improving on the 5.4% yield of the properties sold.
NewRiver REIT said its 5% investment recycling target represents around GBP64 million.
Shares in NewRiver REIT were up 0.5% at 187.06 pence in London on Thursday morning.
By Anna Farley; annafarley@alliancenews.com
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NewRiver (NRR)